Sirius XM / Liberty Reach Deal

**cjwct** · 02-17-2009 01:55 PM

Originally Posted by BobMurdoch

I didn't even realize that...... Did Charlie just make $180-200 million by raiding DirecTV's wallet?

Too funny.

One of these days, Charlie's adventures will make a great book.

Now hopefully Charlie realizes this and goes on a Spring Spending Spree on DirectTV

**wetz73** · 02-17-2009 03:10 PM

Originally Posted by RVD420

Charlie goes off to the bank with Millions of dollars of Liberty's money.

Charlie paid about $.20 on the dollar for the debt. He gets paid the full face value of the Debt. Charlie get a big fat payday today.

Like I had said before it is a WIN WIN for Charlie.

Basically, Charlie gets $5 million for every $1 million he invested. Nice payday!

**Dgenx321** · 02-17-2009 03:26 PM

Are you telling me Charlie made 1.5 billion??

**CorpITGuy** · 02-17-2009 03:32 PM

Where are you guys getting these numbers? I'm not saying it's not true, but it sure doesn't sound realistic.

**BuddyBoy** · 02-17-2009 03:36 PM

Originally Posted by Dgenx321

Are you telling me Charlie made 1.5 billion??

Where in the world did you get that number???

What I've read is that around $400M of debt was purchased. No article I've read states whether any of this was part of a later debt-for-equity swap.

There remains a $175M debt payment due this month (today?). If Charlie paid $0.20 on the dollar for this debt, he gets $175M for a $35M investment, for a profit of $140M. Assuming that $400M was accurate and not exchanged, that leaves another $225M in debt payments. If he again gets paid at par for the debt, and paid $0.20 on the dollar, he would make another $180M. So if the figures of 20 cents on the dollar and $400M are accurate, that's potentially a $320M gain.

**BobMurdoch** · 02-17-2009 04:32 PM

Thanks for clearing that up.....

To put that in perspective, that just about made him "whole" on that amount he lost to in the last two lawsuits to Tivo and someone else I forget....

All for "losing" on his attempt to take over Sirius. Wow, if only "my" failures could be so lucrative....

**Paradox-SJ** · 02-17-2009 04:35 PM

Originally Posted by BobMurdoch

Thanks for clearing that up.....

To put that in perspective, that just about made him "whole" on that amount he lost to in the last two lawsuits to Tivo and someone else I forget....

All for "losing" on his attempt to take over Sirius. Wow, if only "my" failures could be so lucrative....

+1

**Ramy** · 02-17-2009 06:58 PM

So what you are saying is that our stock goes away? We get .20 per share? Then there is no reason for anyone to be buying any right now is there?

**dlsnyder** · 02-17-2009 07:38 PM

So Liberty Media was the white knight today, but that just means Liberty will have a place at the table and not Echostar. So why did they choose to go this route? Sirius has had a long term relationship with Echostar. What has changed? Did they really hate Charlie that much that they would chose "anyone" over him?

**jwgreen68** · 02-17-2009 09:06 PM

Originally Posted by goaliebob99

Wasnt this the same snowball type stuff that people do anyhow (restructuring debt) that gets them worse in debt and then they eventually file for bankruptcy anyhow?

No, not always. It would be similar to someone refinancing their house to get a better rate. It makes the loan longer, but the payments are usually lower and more manageable. A lot of times, individuals/businesses can go into bankruptcy even, and come out stronger and more financially secure than before they went in. A prime example would be Donald Trump. Several years ago he filed for bankruptcy and didn't lose a dime of his own personal wealth. It's all about making those debts more manageable. It's in a creditors best interest to work with the debtor to find a resolution, that works for both parties, rather than the debtor enter into bankruptcy. I'd rather wait for my money a little longer than accept pennies on the dollar from bankruptcy court.